KENYA: Regulator to introduce Kenya short selling framework

Thursday June 19 2014

The Nairobi Stock Exchange has responded to a query on reported plans to introduce Kenya short selling rules as follows:

“The Central Depository and Settlement Corporation (CDSC) plans to install a new IT system that will enable investors to borrow and lend shares to each other for margin trading. The CDSC, which acts as the custodian of electronic accounts holding all shares and bonds that are traded on the Nairobi Securities Exchange (NSE), said the new system will make it possible for the type of trade, also known as short selling to take place at the bourse. The CDSC chief executive Rose Mambo said the new system will free more stocks that are available for trading, potentially increasing market turnover. She said it should be ready by the third quarter (September) 2014.

The regulator, the Capital Markets Authority (CMA), has said that it is looking at drafting laws that will introduce securities lending, short selling, futures and derivatives.”